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Banks halt business with Trump after U.S. Capitol riots

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Deutsche Bank, the main creditor of the Trump Organization, has reportedly decided to cut ties with the US president. After the invasion of the Capitol by his supporters, which resulted in the death of five people, many companies let go of Donald Trump and his relatives.

At the twilight of his reign, Donald Trump appears more and more alone. The violence that took place on Capitol Hill, which he is accused of having provoked, could earn him an impeachment procedure a few days before the end of his mandate. And, once he leaves the White House, the American billionaire’s return to business is not shaping up to be auspicious either.

According to the “New York Times”, the outgoing president, who will probably find the head of the Trump Organization, will lose one of his most important financial backers. Deutsche Bank would indeed have decided to cut the bridges, tired of the negative publicity generated by its links with the company. The blow is all the more severe as the German bank is currently its main creditor, with around 340 million dollars (280 million euros) in outstanding loans, maturing no later than 2024.

Deutsche Bank has not confirmed this information, but the message posted by its manager in North America on the social network LinkedIn seems to point in this direction. “We are proud of our Constitution and support those who seek to enforce it to ensure that the will of the people is respected and that a peaceful transition of power takes place,” Christiana Riley wrote last week.

Also dropped by Signature Bank, close to the Trump family

For Donald Trump, the troubles do not end there. On Monday, Signature Bank decided to close the personal accounts of the US president, who held just over $ 5 million there. Worse: the New York establishment, close to the Trump family for many years – Ivanka Trump, Donald’s daughter, notably sat on its board of directors – called for his resignation.

The tenant of the White House therefore risks paying dearly for the events of the Capitol. In recent days, several American companies have publicly condemned his attitude, some walking the talk. The online sales platform Shopify has closed official pages selling items bearing its image. The Internet payment service Stripe has decided to no longer manage transactions on its campaign site.

In addition, many companies have attacked Donald Trump’s political allies. Amazon, General Electric, AT&T, Dow, Comcast, Verizon, American Express, Airbnb or Mastercard have threatened to hinder fundraising by Republicans, who will soon be deprived of power in the White House and now in the minority in both chambers of the Congress . While JPMorgan Chase, Microsoft, Facebook and Google have, for their part, decided to suspend all political donations, both in favor of Republicans and Democrats.

Most donors cut funds either because the elected officials they were funding opposed the results of the presidential election, or because they went so far as to vote against the confirmation of Joe Biden’s election, as in the case of 22 elected Republicans in the House of Representatives supported by Amex. These large companies fear a degradation of their image both with their disgruntled employees and the general public.

The suspensions vary by company, reports a Financial Times article. Chemist Dow will no longer put in money for an entire electoral cycle, that is, two years for the House of Representatives and six years for the Senate. On the bank side, Citigroup is interrupting financial contributions for three months, JP Morgan Chase for six months and Goldman Sachs… until further notice. The flows will dry up for some time, but the next elections are not until November 2022.

Biden will call on Congress to forgive $10,000 in student debt for all borrowers

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Attention to the issue of student loans was one of Joe Biden's campaign promises.

Once he takes office Joe Biden will ask Congress to immediately cancel $ 10,000 of student debt for all borrowers, in support of the economy that has been affected by Covid-19 , David Kamin of the transition team revealed this Friday .

He commented that Biden will also order the Department of Education to extend the payment pause that is scheduled to expire this month , as well as the interests that affect millions of Americans with federal student loans .

Kamin added that the next administration will improve income-based payment programs, in addition to “fixing and expanding loan forgiveness programs for those with public service jobs .”

No further details were released about the duration of the extension and whether all types of debt collection will be suspended , but it is true that from the first day that President Biden arrives at the White House, he will make decisions in this area, as he promised. in campaign .

The issue is very relevant because the financial aid package approved in December did not include an extension of the payment pause for student loan debtors , in force since March and expiring at the end of the month .

The news is encouraging for many borrowers who have been unable to make their payments . A Pew survey revealed that about 90% of federal student loan applicants have taken advantage of the government’s option to pause their payments during the pandemic and that 6 in 10 borrowers said it would be difficult for them to start paying. your student loan bills again in the next month .

We will have to wait for Biden to assume the presidency to find out how this support is approved, if it is done through Congress or through executive action .

Study: Fifty Years of Tax Cuts for Rich Didn’t Trickle Down

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The tax cuts granted to the richest over the past 50 years in the most developed countries have not helped to create jobs or growth, according to a study by two British researchers and published on Wednesday. It thus highlights the limits of the controversial “streaming theory”.

Analyzing tax levies in 18 OECD countries over the past half-century, the two economists, David Hope, of the London School of Economics, and Julian Limberg, of King’s College London, noted that the declines in taxes granted to the rich only benefited them and thus increased inequalities .

This conclusion goes against the “trickle-down theory”, according to which the enrichment of the wealthiest benefits the poorest, because this money would then be reinjected into the economy, via consumption or investment. An idea at the heart of Emmanuel Macron’s policy since his election – even if he denies it -, highlighted by his decision to abolish the ISF (solidarity tax on wealth) in 2018. In the United States United, Donald Trump’s major tax reform in 2017 was also based on this theory.

DO NOT “FEAR” TO INVOLVE THE RICHEST

“Our research suggests that such policies (of tax cuts for the richest, editor’s note) do not produce the runoff that their supporters claim,” David Hope told Bloomberg . Thus, in the midst of the economic crisis caused by the coronavirus pandemic, “political decision-makers should not fear that an increase in taxes for the wealthy, to finance the financial costs of the pandemic, will harm their economies,” he underlines.

What to give grain to grind in France to the supporters of a re-establishment of the ISF to finance the emergency economic measures intended to help the professions most affected by the health crisis. A measure demanded in particular by the left-wing opposition and by the Nobel Prize for economics Esther Duflo, but swept away by the government.

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